LEGISLATIVE COUNSEL'S DIGEST

The Personal Income Tax Law imposes taxes based upon taxable income, at specified rates, and allows a taxpayer to elect to take a standard deduction in lieu of itemizing deductions, as provided, and provides for inflation adjustment to the standard deduction amount.

This bill, for each taxable year beginning on or after January 1, 2018, would add either $1,500 or $3,000, as provided, to the standard deduction amount, as adjusted for inflation.

This bill would take effect immediately as a tax levy.

Digest Key

Vote:
MAJORITY
Appropriation:
NO
Fiscal Committee:
YES
Local Program:
NO

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

Section 17073.6 is added to the Revenue and Taxation Code, to read:

17073.6.

(a) For each taxable year beginning on or after January 1, 2018, the standard deduction amount determined pursuant to Section 17073.5 shall be supplemented as follows:

(1) In the case of a taxpayer, other than a head of a household or a surviving spouse, as defined in Section 17046, or a married couple filing a joint return, the standard deduction shall be increased by one thousand five hundred dollars ($1,500).

(2) In the case of a head of household or a
surviving spouse, as defined in Section 17046, or a married couple filing a joint return, the standard deduction shall be increased by three thousand dollars
($3,000).

(b) This section shall supplement the standard deduction amount determined pursuant to Section 17073.5 and shall not affect the inflation adjustment to the standard deduction amount required by subdivision (d) of Section 17073.5.

SEC. 2.

This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.